SCHATZ TECHS: (H6) Corrective Phase In Play
* RES 4: 107.000 Round number resistance * RES 3: 106.945 High Dec 3 and a key resistance * RES 2: 1...
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SCHATZ TECHS: (H6) Impulsive Bear Wave Extends
- RES 4: 106.975 High Dec 1
- RES 3: 106.945 High Dec 3 and a key short-term resistance
- RES 2: 106.885 Low Dec 2
- RES 1: 106.835 High Dec 8
- PRICE: 106.710 @ 06:07 GMT Dec 10
- SUP 1: 106.670 Low Dec 9
- SUP 2: 106.655 2.000 proj of the Nov 26 - Dec 2 - 3 minor price swing
- SUP 3: 106.621 2.236 proj of the Nov 26 - Dec 2 - 3 minor price swing
- SUP 4: 106.600 2.382 proj of the Nov 26 - Dec 2 - 3 minor price swing
A sharp sell-off in Schatz futures last week and a bearish start to this week’s session, confirms a continuation of a bear cycle that started mid-October. Note that on the continuation chart, MA studies are in a bear-mode position, highlighting a dominant downtrend. Sights are on 106.655 next, a Fibonacci projection. Key short-term resistance has been defined at 106.945, the Dec 3 high. A corrective bounce would allow an oversold trend condition to unwind.
LOOK AHEAD: UK Timeline of Key Events (Times GMT)
| Date | Time | Period | Event |
| 10-Dec | 1000 | --- | Chancellor Reeves Testifies at TSC on Budget |
| 11-Dec | 0001 | Nov | RICS House Prices |
| 11-Dec | 0950 | --- | BOE Bailey Pre-recorded Chat on Financial Stability |
| 11-Dec | 1000 | --- | BOE Bailey Gives Evidence At Covid-19 Inquiry |
| 12-Dec | 0700 | Oct | GDP / Services / Production / Trade / Construction |
| 12-Dec | 0930 | Nov | Bank of England/Ipsos Inflation Attitudes Survey |
| 16-Dec | 0700 | Oct/Nov | Labour Market Report |
| 16-Dec | 0930 | Dec | S&P Global Manuf / Serv / Comp PMI flash |
| 17-Dec | 0001 | Nov | Brightmine pay deals for whole economy |
| 17-Dec | 0700 | Nov | Consumer Inflation Report / Producer Prices |
| 17-Dec | 1100 | Dec | CBI Industrial Trends |
| 18-Dec | 1200 | --- | Bank Of England Interest Rate |
| 19-Dec | 0001 | Dec | Gfk Monthly Consumer Confidence |
| 19-Dec | 0700 | Nov | Public Sector Finances / Retail Sales |
| 19-Dec | 1100 | Dec | CBI Distributive Trades |
| 19-Dec | 1200 | --- | BOE Market Participants Survey |
| 19-Dec | 1630 | --- | BOE to announce APF Q4 Sales Schedule |
GBPUSD TECHS: Bull Flag Formation
- RES 4: 1.3471 High Oct 17
- RES 3: 1.3452 50.0% retracement of the Sep 17 - Nov 4 bear leg
- RES 2: 1.3416 High Oct 21
- RES 1: 1.3385 High Dec 04
- PRICE: 1.3311 @ 06:18 GMT Dec 10
- SUP 1: 1.3268 50-day EMA
- SUP 2: 1.3241 20-day EMA
- SUP 3: 1.3180/25 Low Dec 2 / Low Nov 26
- SUP 4: 1.3038/10 Low Nov 20 / Low Nov 4 & 5 and the bear trigger
The latest pause in GBPUSD appears to be a flag formation - a bullish continuation signal. This reinforces the current uptrend. The breach of the 50-day EMA undermined a recent bearish theme and highlights a stronger reversal. Scope is seen for a climb towards 1.3452, a Fibonacci retracement point. Initial firm support is seen at 1.3241, the 20-day EMA. A move below this average would be a bearish development.
